Replies to post #258391 on CMKM Diamonds Inc. (fka CMKX)

[Investorman]

It isn't only the pennies that get nailed......


GE Gets Wells Notice
Over Accounting Issues
By DAVID J. REYNOLDS
September 5, 2008 5:41 p.m.

General Electric Co. said Friday that it received a Wells Notice from the Securities and Exchange Commission over several accounting issues.

GE said the SEC is investigating its hedge accounting for derivatives and accounting at a variety of segments, including its rail business and certain aftermarket spare parts primarily in its aviation business.

The notice indicates the SEC staff is considering recommending that the agency bring a civil injunctive action against GE for possible violations of securities laws, according to a filing. (See the filing.)

GE said in the filing that it disagrees with the SEC staff's recommendation and understands that it will have the opportunity to address the issues.

The company remains the subject of a formal SEC investigation over these matters that dates back to 2005, according to the filing.

The Fairfield, Conn., company said it anticipates that it will engage in further discussions with the SEC staff, including discussion of potential resolution of the matter.

Shares of GE closed Friday at $27.88, up 18 cents.

Write to David J. Reynolds at [e-mail]